New York, Dec. 6 (BNA): Stocks were lower in afternoon trade on Wall Street on Tuesday as markets pondered the Federal Reserve’s next steps to combat inflation.
The S&P 500 is down 1.1% as of 12:05 PM ET. The Dow Jones Industrial Average fell 252 points, or 0.7%, to 33,693, and the Nasdaq fell 1.5%, according to the Associated Press.
Technology stocks and retailers suffered some of the biggest losses. Apple shares fell 1.3 percent and Auto Zone 5.1 percent.
Bond yields have remained mostly flat. The yield on the 10-year Treasury fell slightly to 3.56% from 3.58% late Monday.
European markets were mostly lower and Asian markets closed mixed. Many companies have made big moves after their financial updates and acquisition announcements.
Utility NRG Energy fell 14.4% after it announced it was spending $2.8 billion in cash and assuming $2.4 billion in debt to purchase the Vivint Smart Home.
Shares of jewelry company Signet rose 20.2% after it raised its earnings and revenue forecasts for the year.
The broader decline in the market comes a day after stocks fell as stronger-than-expected readings on the economy sparked fears that the Fed has a ways to go to get inflation under control. The Federal Reserve does this by deliberately slowing the economy as interest rates rise.
Investors closely watch economic data and company announcements to get a better idea of how the economy is dealing with severe inflation.
They are also trying to determine whether inflation is falling at a pace that will allow the Federal Reserve to moderate interest rate increases.
The Fed’s policy risks slamming the economy too hard into recession
The Federal Reserve meets next week and is expected to raise interest rates by half a percentage point.
It has raised the benchmark interest rate six times since March, pushing it into a range of 3.75% to 4%, the highest rate in 15 years. Wall Street expects the benchmark price to reach a peak range of between 5% and 5.25% by mid-2023.
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